TOMS RIVER - What to do about downtown Toms River? It's a question that's vexed town officials and business owners for decades.

Once a major shopping destination, the downtown has struggled to attract and maintain businesses over the last 30 years.

But now, an ambitious new redevelopment plan that would create a walkable downtown, complete with hundreds of new apartments and condominiums, along with businesses such as craft breweries and distilleries, has been proposed.

"I think this plan has the most likelihood of succeeding," said Lance Chambeau, owner of River Lady Cruises and captain of the River Lady paddleboat, which has been docked on the Toms River since 1989. "We've been here so long, we've seen a lot of things come and go. Overall, I see more things as positive now, rather than negative."

Watch the video above to see some of the plans for downtown.

Among the ideas included in the downtown revitalization proposal are:

Increase the economic base of the downtown by encouraging the construction of multifamily housing in the area, including free-standing buildings as well as apartments that would be located above stores and restaurants.

Taller buildings of varying heights would be permitted downtown, with 50 percent of structures to be two to four stories high; 20 percent five to seven stories, and 10 percent eight to 10 stories.

Developers will be encouraged to provide shuttle services to NJ Transit's bus station on Highland Parkway.

The West Water Street post office could be redesigned and moved to the corner of Irons and Water streets. The post office would be a three-story building, with six stories of residential housing on top. That would allow for more parking in the area as well as more residential development next to the post office.

A rendering of a proposed "transit village" at the site of the Toms River bus station.(Photo: Toms River)

A multifamily housing development could be built on the site of the current bus station and parking lot as part of a new "transit village." Parking would be concentrated in a parking deck next to a relocated bus depot building.

Traffic patterns in the downtown would be changed to allow for better circulation. One idea is to extend Herflicker Boulevard to Highland Parkway, but making it one-way eastbound. Under this scenario, Water Street would become one-way westbound from Irons Street to Highland Parkway.

A new ramp for northbound access to the Garden State Parkway would be connected to Highland Parkway north of its intersection with Water Street.

Township officials admit that downtown redevelopment will not happen right away.

Among the obstacles are the ongoing cleanup of the former coal gasification site on Adafre Avenue near the post office, which is not expected to be completed until 2020 or 2021.

Lawyer Harvey York, who has worked in the downtown for nearly 50 years called the redevelopment proposal "a great plan," but noted that it's also "incredibly optimistic."

But he said he believes the plan could succeed if the township is willing to consider tax incentives for developers, including tax abatements and payments in lieu of taxes (PILOTS).

"I’ve seen plans come and I’ve seen plans go," said York, who owns five buildings and a vacant parcel of land in the downtown area, either alone or with partners. "This is ambitious. It might work, given the economic changes and the way things are developed, if the town can convince developers that multifamily, six, seven, eight stories can be built downtown, with a PILOT, then you can have growth."

PILOTS allow municipalities to exempt certain parcels from property taxes for a set period of time if developers are making improvements to parcels declared distressed or in need of redevelopment.

Such programs have helped stimulate development in cities such as Jersey City and Asbury Park, but they've drawn criticism because payments made by developers are made to the municipality, and not shared with school districts.

Alizar Zurojew, executive director of Downtown Toms River, the township's business improvement district, said business owners are hopeful that at least some aspects of the ambitious downtown plan will come to fruition.

"I think it’s been a long time coming," Zurojew said of the downtown plan. "I think they’ve put something together that seems like it has some traction. It's positive. For sure, there is a little bit of doubt, or, I should say, less doubt and more a cautious optimism."

Zurojew said the downtown has not capitalized on its greatest asset: the Toms River, which cuts through Huddy Park and flows behind the post office.

"Our waterfront is our biggest asset," he said. "We have a beautiful river, We have a park with a canal coming through it. We have to start treating it as an asset. In this new plan, the larger buildings, from the top floors, they're going to have river views."

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Main Streets is shown in downtown Toms River in this flatened 360 degree image Thursday, February 8, 2018. (Photo: Thomas P. Costello)

Mayor Thomas F. Kelaher and the Township Council already are moving forward with one of the first big steps toward revitalizing the downtown: the planned purchase of the 50-room Red Carpet Inn, the troubled hotel at the corner of Main and Water streets.

Last month, the council introduced an ordinance that would allow Toms River to acquire the hotel, either through negotiations with the owner or by using eminent domain, if possible.

A public hearing on an ordinance that sets aside $4.8 million for the purchase of the property will be held at 6 p.m. Tuesday in town hall. Township officials envision buying the hotel and knocking it down.

Downtown Toms River along Main Street is shown in this flattened 360 degree image Thursday, February 8, 2018. (Photo: Thomas P. Costello)

The property could be used as an extension of Huddy Park and could help mitigate flooding from the Toms River, which occurs regularly in that area.

In early November, Toms River filed a public nuisance charge against the 50-room motel in municipal court, contending the motel's operation "endangers the safety or health of a considerable number of people," and that "unlawful conduct" takes place there.

Police officers have responded to more than 750 incidents at the Red Carpet Inn in the past two years. Watch the video above to learn more about the nuisance complaint the township filed against the motel's owners.

"A lot of dominoes need to fall for this to happen, but that's a big domino," Zurojew said of the hotel purchase. "That one purchase would totally change the downtown."

Zurojew said the BID is working on finding sponsors for a trolley service in the downtown area that he hopes can be in service in time for summer. Down the road, he'd love to see a water taxi service ferrying people to the towns along the river.

"I think we have to be patient," Zurojew said. "A lot of this stuff will take time. We have to celebrate the small victories."